3 - Segmentation, Targeting And Positioning

Question 1

What Is Market Segmentation?

Answer 1

When the market is split up into subgroups of consumers with similar characteristics.

Question 2

What Does Market Segmentation Identify?

Answer 2

Different types of consumer and their wants and needs.

Question 3

What Are The Segmentation Methods?
(4 Points)

Answer 3

~ Demographic.

~ Geographic.

~ Income.

~ Behavioural.

Question 4

What Is Demographic Segmentation?

Answer 4

Identifies subgroups of the population based on their demographic profile or characteristics.

Question 5

What Are Examples Of Demographic Segmentation?
(7 Points)

Answer 5

~ Age.

~ Gender.

~ Level of education.

~ Race.

~ Religion.

~ Family size.

~ Stage in life.

Question 6

What Is Geographic Segmentation?
(2 Points)

Answer 6

~ Defines market categories based on where people live.

~ People in different categories display different characteristics.

Question 7

What Are Examples Of Geographic Segmentation?
(5 Points)

Answer 7

~ Country.

~ Region.

~ City.

~ Climate.

~ Population density.

Question 8

What Is Income Segmentation?

Answer 8

Marketing strategy used by businesses to divide a market into distinct groups based on consumers income levels.

Question 9

What Is Behavioural Segmentation?

Answer 9

Marketing strategy that divides consumers into groups based on their behaviours and interactions with a company’s products or services.

Question 10

What Are Examples Of Behavioural Segmentation?
(6 Points)

Answer 10

~ Reasons for making purchases.

~ Frequency of purchase.

~ Time of purchase.

~ Brand loyalty.

~ Method of purchase.

~ Triggers.

Question 11

What Are The Benefits Of Market Segmentation?
(4 Points)

Answer 11

~ Better consumer understanding.

~ Innovation and growth opportunities.

~ Competitive advantage.

~ Better resource allocation.

Question 12

What Is Targeting?

Answer 12

Process that companies use to identify and focus on specific groups of consumers who are most likely to purchase their products or services.

Question 13

What Will Targeting Be Influenced By?
(5 Points)

Answer 13

~ Mission and objectives.

~ Level of demand.

~ Competition.

~ Nature of the product.

~ Understanding of needs and wants of a specific segment.

Question 14

What May Targeting Include?
(2 Points)

Answer 14

~ Niche marketing.

~ Mass marketing.

Question 15

What Is Niche Marketing?
(2 Points)

Answer 15

~ When a firm targets a small subsection or previously unexploited gap in a larger market.

~ Gives a firm first mover advantage, allowing them to charge a higher price.

Question 16

What Is Mass Marketing?
(2 Points)

Answer 16

~ When a firm targets the whole of a market rather than a particular segment.

~ Can give a business a high volume of sales at a low price.

Question 17

What Is Positioning?

Answer 17

When a product is placed in the market relative to its competitors.

Question 18

How Is Positioning Achieved?

Answer 18

By changing elements of the marketing mix to meet the needs of the target market.

Question 19

What Are Some Influences On Positioning?
(4 Points)

Answer 19

~ Budgets.

~ Creativity and innovation.

~ Degree of competition.

~ State of the economy.